19350119_minutes.pdf

181

A meeting of the Executive Committee of the Federal Reserve

Board was held in Washington on Saturday, January 19, 1935, at 12:35

P. m.

PRESENT: Mr. Eccles, GovernorMr. HamlinMr. MillerMr. James

Mr. Morrill, SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Governor

The Governor stated that Mr. Szymczak had called him on the

telephone from Cleveland and had reported that in conversations with

Mr. Williams, former Chairman and Federal Reserve Agent of the bank,

alld Mr. Burke, Deputy Chairman, they had indicated that they thought

M. J. Fleming, Deputy Governor, should be appointed Governor of

the bank to succeed Governor Fancher„ and that it was understood that

the board of directors were of the same opinion. Governor Eccles said

that he agreed with Mr. Szymczak that an increase of $5,000 to $23,000

Per annum in the salary of Mr. Fleming would be ample. However, he

l'arther stated that in the event that the Board of Directors of the

Pad.ereo.1. Reserve Bank and the District Committee recommended a higher

841e-ri7) he would be willing to approve a salary up to $25,000 per annum.

other members of the Board indicated agreement with Governor Eccles'sta

tement to Mr. Szymczak.

Mr. Miller stated that the proposed program of competition forthe

selection of an architect for the Board's new building contains aProvi.4'4.0r1 that the Board shall have the right to accept or reject the

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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design of the winning architect and that in the event the design is

rejected the winning architect is to receive from the Board a fee of

$10, 000. He said that such a provision is usually included in high

grade programs of competition, and that he recommended that it be in-

cluded in the Board's program.

Approved.

Upon recommendation by Mr. Miller itwas voted to approve an honorarium of $500,plus necessary traveling and subsistence ex-penses, for each member of the jury (otherthan Mr. Miller) for his service on the jury.

Mr. Miller referred to the discussion at the meeting on January

18 °f the question of the fee for the architect for the building and

l'ecommended that the fee be placed at 4 1/2%, exclusive of supervision

d sPecial engineering services, but not to exceed, on that basis, a

total of $1050000.

Mr. Miller's recommendation was approved.

It was also agreed that before the pro-gram of competition is announced telegraphicinquiries should be made of the architects in-vited to participate to ascertain their willing-ness to compete if formal invitations are extendedto them and the conditions of the program aresatisfactory.

Mr. Miller stated that the Board's counsel had advised that it

ttPilealle that title to the site for the building on Constitution Avenue

11111 be transferred to the Board not later than Tuesday of next week

44d he 84ggested that the Board approve a statement to be given to the

ess at the time title is obtained.

Mr. Miller was authorized to issue, at theappropriate time, a press statement announcing


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the acquisition of the property and statingthat the names of the invited architects andmembers of the jury would be announced shortly.

Mr. Miller reported that he had received from Mr. Charles

Moore, Chairman of the Commission of Fine Arts, an informal list of ten

architects whom Mr. Moore considered as being the most eminent in the

United States and the names of two other architects who might be in-

cluded in the list of competitors but who were not considered by Messrs.

Moore or Meeks as having a rating as high as the first ten. He also

stated that while Messrs. Moore and Meeks originally were in favor of

1111riting fifteen architects to compete they had since narrowed the listto

Eta

the

the

ten architects whom they consider as standing out conspicuously

leading architects in the United States.

After discussion, upon recommendation byMr. Miller, it was voted to limit the competitionto the first ten architects suggested by Mr.Moore as follows:

Coolidge, Shepley, Bulfinch and Abbott - Boston,Massachusetts.

Delano and Aldrich - New York, New York.John Russell Pope - New York, New York.James Gamble Rogers - New York, New York.Egerton Swartwout - New York, New York.York & Sawyer - New York, New York.Paul Philippe Cret - Philadelphia, Pennsylvania.Holabird and Root - Chicago, Illinois.Eliel Saarinen - Detroit, Michigan.Arthur Brown - San Francisco, California.

In connection with this action, GovernorEccles said that Mr. Szymczak had stated atYesterday's meeting that he would be agreeableto any action which the Board might take duringhis absence with regard to the selection of thecompeting architects. Mr. Miller stated that Mr.Thomas had informed him yesterday that he was infavor of limiting the competition to ten architects.


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At this point Mr. Everett V. Meeks, Consulting Architect, was

invited into the meeting.

Mr. Miller stated that he had consulted with Messrs. Meeks

and Moore as to the professional members of the jury to make the award

t° the successful architect and they were agreed that Mr. William

kerson of the Massachusetts Institute of Technology, Mr. John M.

11°Ivells, member of the Commission of Fine Arts and Mr. John W. Cross

of the firm of Cross and Cross, New York, New York, were the best pro-

fessional men obtainable to serve in that capacity.

Upon recommendation by Mr. Miller, theCommittee approved the selection of Messrs. Emerson,Howells and Cross to serve as the professional mem-bers of the jury.

I. Miller stated that the draft of the program of competition

w°111c1 be completed on Monday morning of next week.

It was agreed that a copy of the draftwould be furnished to each of the appointivemembers of the Board early on Monday morning,January 21, and that unless some member of theBoard raised a question with Mr. Miller regard-ing the program before 12 o'clock, noon, onTuesday, January 22, 1935, it would be consideredas being approved.

Mr. Meeks then left the meeting and the Committee acted on the

t°11°wing matters:

Letter to Mr. Fletcher, Acting Federal Reserve Agent at thePeder41 Reserve Bank of Cleveland, reading as follows:

,T"Receipt is acknowledged of Mr. Evans' letter of13--‘ta17 8, 1955, advising that 'The Commercial Savingsbe 131, (3m136013°, Galion, Ohio, which was admitted to mem-thls-:F Mel' 31, 1934, has reported that it is unable at18 - to comply with condition of membership numbered) which reads as follows:


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'Within six months from the date of admission tomembership, such bank shall effect the removal fromits banking quarters of the offices of the GuarantySavings and Loan Company and of the DiversifiedHolding Company which are now located therein.

"In view of the fact that the bank has filed notice ofWithdrawal from the System and Mr. Evans' advice that thebank contemplates surrender of its stock in the Federal Re-serve Bank on February 27, 1935, at the expiration of thesix months' period from date of notice, no action will betaken by the Federal Reserve Board at this time by reasonof the bank's failure to comply with condition of member-ship numbered 18."

Approved.

Telegram to the governors of all Federal reserve banks, except

Ittollmond, reading as follows:

"Referring Resolution transmitted my letter December29$ 1954, X-9072. Please credit the Federal Reserve Bankof Richmond in your daily statement of credits through theGold Settlement Fund for account of the Federal ReserveBoard - Building Account eighty per cent of the fifty-eightPer cent of the assessment which was to be paid at suchtimes and in such amounts as the Board might call. Pleaseadvise Richmond by wire of the purpose and amount of thecredit."

Approved, together with a telegram toGovernor Seay of the Federal Reserve Bank ofRichmond, reading as follows:

„ "Referring resolution transmitted my letter December", 1934, X-9072. Please credit Federal Reserve Board-Building Account with eighty per cent of the fifty-eightPer cent of the assessment which was to be paid at suchtimes and in such amounts as the Board might call."

Letter to Mr. Case, Federal Reserve Agent at the Federal Re-

Bank of New York, reading as follows:

an "This refers to Mr. Gidney's letters of December 7:!°1 December 12, 1934, with inclosures, regarding thetu:oPer classification as savings deposits of twenty-three


1/19/35 -6 -

"accounts held by The First National Bank and Trust Companyof Walden, Walden, New York, which were set up by NationalBank Examiner F. R. Steyart in his report of examination ofthat bank as of October 1, 1934, as 'savings accounts notconsidered bona fide thrift accounts'.

"It is noted that in Mr. Downs' letter of November 26,1934, in reply to the bank's letter to you of November 19,1934, the opinion is expressed that certain of the accountsin question may properly be classified as savings accountsWithin the meaning of the Federal Reserve Board's RegulationQ, that one or two others of the accounts should not be soClassified, and that with respect to several of the accountsthe information is not sufficient to justify an opinion withrespect to their proper classification.

"While, from the information contained in the letter fromThe First National Bank and Trust Company of Walden a few ofthe accounts in question do not appear to be properly classi-fied as savings deposits, it is believed that the examinerWould have been justified, particularly in view of the state-ments contained in the Board's letter of April 28, 1934 tothe Comptroller of the Currency, in offering no criticismof the classification as savings deposits of a considerablenumber of these accounts. Without undertaking to express an()Pinion with respect to these accounts individually, theBoard sees no objection to the handling by your office ofcases of this kind in the manner followed in the presentinstance, bearing in mind the considerations set forth inthe Board's letter of May 8, 1934 (X-7890) regarding the re-quirements of Regulation Q in respect to savings depositsand the Board's letter to the Comptroller of the Currencydated April 28, 1934.

"The Board is transmitting to the Comptroller of theuurrency for his information copies of Mr. Gidney's letterand inclosures and of this reply."

klik 0

1.86

Approved.

Letter to Mr. Case, Federal Reserve Agent at the Federal Reserve

f New York, reading as follows:

vu, Trhis refers to your letter dated January 12, 1935 in,L,!-Lch you requested a ruling by the Board upon the legalitya proposed commitment by the Federal Reserve Bank of New

_ark, under the provisions of subsection (b) of section 15bthe Federal Reserve Act, to discount or purchase oblige-of Hudson Motor Car Company, Detroit, Michigan, repre-

N2ltinC a proposed loan by Commercial Investment Trust, Ltd.,vw York, New York, to such company.


1.87

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"It is understood that Hudson Motor Car Company hasits office and principal place of business in Detroit,Michigan, that on the date of filing its application suchcompany was a depositor in and a borrower from nine banks,of which six were located in New York City, and that onsuch date the total amount of the company's indebtednessto banks was $1,800,000 of which $1,200,000 was owed tothe banks located in New York City.

"In your letter you state that Commercial InvestmentTrust, Ltd. is an 'investment company' organized underArticle 12A of the Banking Law of New York and that it hasOffices in Buffalo, New York and New York City. It isunderstood that the proposed commitment to discount or pur-chase obligations of Hudson Motor Car Company is in allrespects in conformity with the provisions of subdivision(b) of section 13b of the Federal Reserve Act and theBoard's Regulation SI except for the possible questionpresented by reason of the fact that Hudson Motor CarCompany has no office or place of business in the SecondFederal Reserve District. In your letter you state thatit is your understanding that the reason for presenting.11.18 application to the Federal Reserve Bank of New Yorkis that the banking institutions which are interested inassisting the Hudson Motor Car Company to obtain the de-sired financing are located in New York City.

"As you know, the Board, in a ruling published on page675 of the Federal Reserve Bulletin for October, 1934,stated that in its opinion a Federal reserve bank, underthe provisions of subsection (b) of section 13b of theFederal Reserve Act, may lawfully discount for a financinginstitution operating in its district, an obligationentered into for the purpose of obtaining working capitalfor an established industrial or commercial businesslocated in another Federal Reserve District just across the4ane dividing that district from the district of the dis-2unting Federal reserve bank, provided that the other

T°licable requirements of the law and the Board's Regula-' fl S on this subject were met._ "It is the opinion of the Federal Reserve Board thatni the basis of the above facts, the proposed commitment to'8'10'scount or purchase the obligations of Hudson Motor Cart1,11PanY is covered by the above-mentioned ruling, evensfLkgh such company is located in a different Federal Re-serve District and is not located just across a districtpree4as was the situation in the case covered by the Board'sis 174-clus ruling. Accordingly, the Federal Reserve Board

_of the opinion that upon the basis of the facts statedabove, the Federal Reserve Bank of New York may discount


1 V

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"or purchase, or may make a commitment to discount or pur-chase, from Commercial Investment Trust, Ltd. the proposedObligations of Hudson Motor Car Company, under the provisionsof subsection (b) of section 13b of the Federal Reserve Act."

Approved.

Letter to Mr. Wood, Federal Reserve Agent at the Federal Reserve

811nk of St. Louis, reading as follows:

"Receipt is acknowledged of your letter of January 9,1955, in which you state that Mr. Edward J. Costigan de-sires to withdraw his application under the provisions ofsection 32 of the Banking Act of 1933 for a permit toserve at the same time as director of The Boatmen's NationalBank and as director and officer of Whitaker & Company, bothof St. Louis, Missouri, in view of the fact that he was notreelected to the board of directors of the national bankat the annual meeting held on January 8, 1935.

"'Under the circumstances, it appears that section 52is no longer applicable to Mr. Costigan and therefore hisePPlication will be regarded as withdrawn."

Approved.

Letter to Mr. Case, Federal Reserve Agent at the Federal ReserveBejak

°f New York, prepared pursuant to the action taken at the meeting

Of the Board on December 29, 1954, transmitting the following Clayton

Ilet Permit and stating that the delivery of the permit should not be

ineide 111,4.-44(41 it has been determined that Mr. Grace's service with Stone

ter, Inc., the Grace Corporation and the banks involved, does

°me within the provisions of section 32, or that his service withellch

Institutions has been brought into conformity with the require-eIrt 8

Of that section:

Mr. Joseph P. Grace, for permission to serve at the same time

New a director of The National City Bank of New York, New York,

Re: !°rk, as a director of the City Bank Farmers Trust Company,- 'etrk, New York, and as a director of Grace Brothers &


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Company, Ltd., London, England, for the period ending January142 1936.

Approved.

Letters to applicants for permits under the Clayton Act, ad-

in accordance with the policy set forth in the Board's letter

Of January 9, 1935, X-90851 of approval of their applications asfollows:

Mr. F. H. Farrington, for permission to serve at the same timeas a director of the Brandon National Bank, Brandon, Vermont,and as a director of The National Bank of Vergennes,Vergennes, Vermont, for the period ending January 14, 1936.

Mr. Prescott Jennings, for permission to serve at the sametime as a director of The Fall River Morris Plan Company,Pall River, Massachusetts, and as a director of The FallRiver National Bank, Fall River, Massachusetts, for thePeriod ending January 14, 1936.

Mr, Scott Scammell, for permission to serve at the same timeas a director of The First National Bank of Spring Lake,!Pring Lake, New Jersey, and as a director of The First-

National Bank of Trenton, Trenton, New Jersey, forPeriod ending January 14, 1956.

Mr* R. Mr. Beadle, for permission to serve at the same time asa director and officer of The First National Bank of Shick-PinnY, Shickshinny, Pennsylvania, and as a director of The:Posit National Bank of Du Bois, Du Bois, Pennsylvania, for'41e period ending January 14, 1956.

14r. George Worrall, for permission to serve at the same time.:1!a director and officer of The Southside National Bank of4117te_r, Butler, Pennsylvania, and as a director and officerrorzne Butler Savings and Trust Company, Butler, Pennsylvania,tLie period ending January 14, 1956.

Mr. John S. Whaley, for permission to serve at the same timeHill 'LI-rector of The First National Bank of Snow Hill, SnowBish' MarYland, and as a director of The Bishopville Bank,

°Pville, Maryland, for the period ending January 14, 1956.


SECRET iS NOTE: MAY 15, 1935.

The Clayton Act permit issued to Mr. Scott

Scammell covered his service as a director of "The

First National Bank of Spring Lake", Spring Lake,

New Jersey, the predecessor institution, instead of

the "First National Bank of Spring Lake". Mr. Case

was advised of this error on May 7, 1955, and re-

sted to correct his records and advise Mr.

ammell and the banks involved to do likewise.


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Mr. Edward Ball, for permission to serve at the same time asa director of The Florida National Bank of Jacksonville,Jacksonville, Florida, as a director of The Florida NationalBank and Trust Company at Miami, Miami, Florida, and as adirector of the Florida Bank at Orlando, Orlando, Florida, forthe period ending January 14, 1956.

Mr. John F. Hagey, for permission to serve at the same timeas a director and officer of The National Boulevard Bank ofChicago, Chicago, Illinois, as an officer of The FirstNational Bank of Chicago, Chicago, Illinois, and as a direc-tor of the University State Bank, Chicago, Illinois, for thePeriod ending January 14, 1956.

Mr. Bentley G. McCloud, for permission to serve at the sametime as a director and officer of The First National Bank ofChicago, Chicago, Illinois, as a director of The Uptown StateBank, Chicago, Illinois, and as a director of the MercantileTrust and Savings Bank of Chicago, Chicago, Illinois, forthe period ending January 14, 1956.

Mr. Roy C. Osgood, for permission to serve at the same timeae an officer of The First National Bank of Chicago, Chicago,

and as a director and officer of The Upper Avenue

1936:idank, Chicago, Illinois, for the period ending January 14,

111:r. Edward G. Seubert, for permission to serve at the same(tiame as a director of The First National Bank of Chicago,;Pioago, Illinois, and as a director and officer of the Stateoank of Whiting, Whiting, Indiana, for the period endingJanuary 14, 1956.

.5 R. Kirby, Jr., for permission to serve at the same;e as an officer of The Northern National Bank of Duluth,n4uth, Minnesota, and as a director and officer of thelnmers State Bank, Chisholm, Minnesota, for the period endingJanuary 140 1956.

L. Berry, for permission to serve at the same time asdirector and officer of The First National Bank of Sanger,

Narlger, Texas, and as a director and officer of The Firstational Bank of Lewisville, Lewisville, Texas, for thePeriod ending January 14, 1956.

Approved.


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Letters to to the respective Federal reserve agents stating that

the Board has reconsidered the following Clayton Act applications

ands in accordance with the policy set forth in the Board's letter of

41411erY 9, 1935, has issued permits for the period ending January 14,

1936:

Mr, Bartholomew E. Brophel, for permission to serve at thesame time as a director of the Genesee Valley National Bankand Trust Company of Geneseo, Geneseo, New York, and as a:irector and officer of the Genesee River National Bank ofcunt Morris, Mount Morris, New York, for the period endingJanuary 14, 1956.

Mr. Arthur E. Crone, for permission to serve at the sametime as a director and officer of The Plainfield TrustComp

Y, an—,Plainfield, New Jersey, and as a director and

officer of The Plainfield National Bank, Plainfield, NewJersey, for the period ending January 14, 1956.

Mr, B. E. Hendricks, for permission to serve at the same time

;1:1%1 director of The First National Bank of Wahoo, Wahoo,

as a director of the Oak Creek Valley Bank,!alparaiso, Nebraska, and as a director of the Union Stateank, Ceresco, Nebraska, for the period ending January 14, 1956.Mr P,--,a * '4-'1114 E. Langer, for permission to serve at the same time,1! a director and officer of The First National Bank ofr07,,bo, Poulsbo, Washington, and as a director and officer

'period

"the Kitsap County Bank Port Orchard, Washington, for theending January 141 1956.

Approved.

There were then presented the following applications for changes

v°e]k of Federal reserve banks:ioEition f

, strict or ADDITIONAL Stock: SharesTr,32. 2

New isc;%.et Deposit Company, Syracuse,432 432


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ARP.2qions for SURRENDER of Stock:11.141119:130. 4.Beaver til-a7.1;mpany, Beaver, Pennsylvania.The Central National Bank of London, London,The Morrow- National Bank, Morrow, Ohtibt.The Economy National Bank of Ambridge,

Ambridge, Pennsylvania.

Plattigt_No 10First Til-G14d;Wiltny of King City, King City,

Missouri.

District No 11The Melissa :National Bank, Melissa, Texas.

Approved.

Shares

90Ohio. 50

26

Thereupon the meeting adjourned.

69

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215

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50 50Total 278


19350119_minutes.pdf

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